In a word no! The HMGuv are twanzphobic (and sexist) too!
Just doing a bit of spot reading of the (UK) Gender Recognition Act 2004, and it seems there are a few exceptions to the GRA2004.
The fact that a person’s gender has become the acquired gender under this Act—
(a) does not affect the descent of any peerage or dignity or title of honour
Hereditary Peerages in the UK only go down the male line. If no male heir, then the peerage becomes “extinct”.
Therefore, if a gender recognition change has happened, then a male can still scoop up his beloved hereditary peerage with his immaculately manicured hands.
And a female of that line of decent, even if she were to get the “add-a-dick-to-me” surgery, wave around her GRC, whilst scratching her faux balls, would not be able to claim the hereditary peerage.
So you see, HMGuv are just as twanzphobic as the rest of us here, and believe that biological sex trumps any airy-fairy gender nonsense.
Of course, HMGuv remain as sexist as they ever were on the subject of hereditary peerages.